WHAT IS INDUSTRIAL RELATIONS ( IR ) ?

# INDUSTRIAL RELATIONS ( IR ) REFERS TO WORKPLACE & SOCIETAL

# IN ITS BROADEST MEANING, IR IS, “ ALL ASPECTS OF PEOPLE AT

WORK”---KOCHAN--1980

# THE LABOUR DICTIONARY DEFINES IR AS, “ THE RELATIONS BETWEEN

EMPLOYERS & EMPLOYEES ININDUSTRY”.

# THE INTERNATIONAL LABOUR ORGANIZATION ( ILO ), GENEVA, HAS USED

THE EXPRESSION TO DENOTE SUCH MATTERS AS “FREEDOM FORASSOCIATION & THE RIGHT TO ORGANIZE, THE APPLICATION OF THEPRINCIPLE OF THE RIGHT TO ORGANIZE & THE RIGHT TO COLLECTIVEBARGAINING OF COLLECTIVE AGREEMENTS OR CONCILIATION &ARBITRATION PROCEDDINGS & THE MACHINERY FOR COOPERATIONBETWEEN THE AUTHORITIES & THE OCCUPATIONAL ORGS AT VARIOUSLEVELS OF THE ECONOMY”.

( CONCILIATE MEANS TO MEDIATE IN A DISPUTE; THAT IS TRY TO SETTLE

A DISPUTE BETWEEN TWO PARTIES )

# THE FIELD OF IR RECEIVED A THEORETICAL IMPETUS BY THE WORK OF

LOHN T. DUNLOP IN 1958 WHO DEFINED THE SCOPE & BOUNDRY OF IR.THE SYSTEM WAS USED TO DESCRIBE THE CHARACTERISTICS OF ONECOUNTRY AS DISTINGUISHED FROM ANOTHER. THE MODEL HIGHLIGHTSTHAT THE IR SYSTEM AT ANY ONE POINT OF TIME IN ITS DEVELOPMENTCONSISTS OF CERTAIN ACTORS, CERTAIN CONTEXTS, AN IDEOLOGY WHICHBINDS THE IR SYATEM TOGETHER & A BODY OF RULES CREATED TOGOVERN THE ACTORS AT THE WORKPLACE & THE COMMUNITY.

# IN INDIA, THE EMPLOYMENT RELATIONSHIPS WERE INSTTUTIONALIZED IN

1920s WHEN TRADE UNION ACT ( 1962 ) WAS FORMULATED.

# KOCHAN ( 1980 ) HAS OBSERVED THAT LIKE ANY COMPLEX SOCIAL

SYSTEM, IR SYSTEMS ARE BEST UNDERSTOOD BY IDENTIFYING &ANALYSING THEIR VARIOUS COMPONENTS & HOW THEY INTERACT WITHONE ANOTHER TO PRODUCE CERTAIN OUTCOMES.

# THE BASIC PURPOSE OF THE IR SYSTEMS CONCEPT ARE TO PROVIDE A

CONCEPTUAL FRAMEWORK FOR ORGANISING KNOWLEDGE ABOUT IR &FOR UNDERSTANDING HOW VARIOUS COMPONENTS OF IR SYSTEMSCOMBINE TO PRODUCE PARTICULAR OUT-COMES.

# IR REFERS TO A DYNAMIC & DEVELOPING CONCEPT WHICH IS NOT

LIMITED TO THE COMPLEX OF RELATIONS BETWEEN TRADE UNIONS &MANAGEMENT BUT ALSO REFERS TO THE GENERAL WEB OFRELATIONSHIPS NORMALLY OBTAINING BETWEEN EMPLOYERS & EMPLOYEES—A WEB MUCH MORE COMPLEX THAN THE SIMPLE CONCEPT OF LABOUR-CAPITAL CONFLICT.

# THE FEATURES OF IR ARE :-

1. IR ARE OUTCOME OF EMPLOYMENT RELATIONSHIP IN AN ORG. 2. AS A REGULATED RELATIONSHIPS THE FOCUS OF IT IS ON RULE- MAKING BY PARTICIPANTS SO THAT THERE MAY BE UN-INTERRUPTED PRODUCTION. 3. THE WORK SITUATION MAY PROVIDE METHODS OF ADJUSTMENT & COOPERATION WITH EACH OTHER. 4. THE GOVT AGENCIES INVOLVE TO SHAPE THE INDUSTRIAL RELATION THROUGH LAWS, RULES & AWARDS. AND 5. THE IMPORTANT ACTORS OF IR ARE EMPLOYEES OR THEIR ORGS, EMPLOYERS & THEIR ASSOCIATES & GOVT.

# IR IS ALSO KNOWN AS LABOUR RELATIONS.

THEORIES & ASSUMPTIONS ( FROM ENCYCLOPEDIC DICTIONARY OF

HRM BY BLACKWELL )

KOCHAN ( 1980 ) HAS SUGGESTED THAT AN IMPORTANT FACTOR

DISTINGUISHING IR FROM ITS CONTRIBUTING DISCIPLINES & RELATEDAREASTHAT IS HRs, IS A DISTINCTIVE SET OF VALUES & ASSUMPTIONS. THESECOULD BE :- 1. LABOUR IS MORE THAN A COMMODITY. ( COMMODITY MEANS A RAW MATERIAL OR AGRICULTURAL PRODUCT THAT CAN BE BOUGHT & SOLD.) 2. THERE IS AN INHERRENT CONFLICT OF INTERESTS BETWEEN EMPLOYERS & EMPLOYEES IN TERMS OF ECONOMIC MATTERS ( e. g. WAGES VERSUS PROFIT ), BUT ALSO IN TERMS OF FRICTION IN SUPERVISOR-SUBORDINATE RELATIONS.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir3. THERE ARE LARGE AREAS OF COMMON INTERESTS BETWEEN EMPLOYERS & EMPLOYEES DESPITE THEIR CONFLICTING INTERESTS & IMPORTANT INTERDEPENDENCIES.4. THERE IS AN INHERENT INEQUALITY OF BARGAINING POWER IN MOST INDIVIDUAL E-E RELATIONSHIPS. AND5. THERE IS PLURALISM, THE NOTION THAT THERE ARE MULTIPLE COMPETING INTERESTS GPS IN SOCIETY, EACH WITH VALID INTERESTS. ( PLURALISM MEANS DIFFERING CULTURES & VIEWS WITHIN A SOCIETY ).

OBJECTIVES OF IR

1. TO PROTECT THE INTEREST OF WORKERS & THE MANAGEMENT

THROUGH MUTUAL UNDERSTANDING & RELATIONSHIPS. 2. TO AVOID INDUSTRIAL DISPUTES SO AS TO DEVELOP A HEALTHY WORK ENVIRONMENT. 3. TO IMPROVE QUALITY OF WORK LIFE OF WORKERS. 4. TO INCREASE PERFORMANCE THROUGH REDUCING LABOUR TURNOVER & FREQUENT ABSENTEEISM. 5. TO PROVIDE CONSTRUCTIVE CRITISM OF THE MANAGEMENT. 6. TO PROTECT THE WORKERS AGAINST HARMFUL EFFECTS ON THEIR HEALTH, SAFETY & MORALITY THROUGH ENACTMENT OF DIFFERENT LEGISLATIONS. 7. ESTABLISH INDUSTRIAL DEMOCRACY BASED ON LABOUR PARTNERSHIP. 8. TO BOOST THE DISCIPLINE & MORALE OF WORKERS. 9. TO ELIMINATE, AS FAR AS POSSIBLE & PRACTICABLE, STRIKES, LOCKOUTS & GHEAROS BY PROVIDING REASONABLE WAGES, IMPROVED LIVING & WORKING CONDITIONS & FRINGE BENEFITS.

# ACCORDING TO KIRKALDY----IR IN A COUNTRY ARE INTIMATELY

CONNECTED WITH THE FORM OF ITS POLITICAL GOVT & THE OBJECTIVESOF AN INDUSTRIAL ORG MAY CHANGE FROM ECONOMIC TO POLITICALENDS. THUS HE DIVIDES THE OBJECTIVES OF IR INTO FOURCATEGORIES :- 1. IMPROVEMENT IN THE ECONOMIC CONDITIONS OF WORKERS IN THE EXISTING STATE OF INDUSTRIAL MANAGEMENT & POLITICAL GOVT. 2. CONTROL EXERCISED BY THE STATE OVER INDUSTRIAL UNDERTAKINGS WITH A VIEW TO REGULATING PRODUCTION & PROMOTING HARMONIOUS IRs. 3. SOCIALISATION OR RATIONALISATION OS INDUSTRIES BY MAKING THE STATE ITSELF A MAJOR EMPLOYER. AND 4. VESTING OF A PROPRIETARY INTEREST OF WORKERS IN THE INDUSTRIES IN WHICH THEY ARE EMPLOYED.

FACTORS / CONDITIONS FOR GOOD IR

# GOOD IR DEPEND ON VARIETY OF FACTORS & SOME OF THESE COULD

BE :- 1. HISTORY OF INDUSTRIAL RELATIONS IN AN ENTERPRISE-----A GOOD HISTORY IS MARKED BY HARMONIOUS RELATIONSHIPS BETWEEN MANAGEMENT & WORKERS IN AN ENTERPRISE. ONCE MILITANCY IS ESTABLISHED AS A MODE OF OPERATIONS, THERE IS TENDENCY TO CONTINUE. IT TAKES TIME TO CHANGE. ( HERE MILITANCY MEANS AGGRESSIVE & COMBATIVE IN SUPPORT OF A PARTICULAR CAUSE. ) 2. ECONOMIC SATISFACTION OF WORKERS------REASONABLE WAGE & BENEFITS ARE IMPORTANT FOR WORKERS WHICH SHOULD BE COMPARABLE IN OTHER SIMILAR ORGS. 3. SOCIAL & PSYCHOLOGICAL SATISFACTION------WORKER PARTICIPATION IN MANAGEMENT, MACHINERY FOR REDRESSAL OF GRIEVANCES, SUGGESTION SCHEMES, JOB ENRICHMENT, EFFECTIVE TWO-WAY COMN, REGULAR UNION-MANAGEMENT NEGOTIATIONS etc. ARE IMPORTANT ASPECTS. ( JOB ENRICHMENT MEANS REDESIGNING JOBS IN A WAY THAT INCREASES THE OPPORTUNITIES FOR THE WORKER TO EXPERIENCE FEELINGS OF RESPONSIBILITY, ACHIEVEMENT, GROWTH & RECOGNITION.) 4. OFF-THE-JOB CONDITIONS------LIVING CONDITIONS OF WORKERS ARE IMPORTANT. WE EMPLOY THE “ WHOLE PERSON”. HIS HOME LIFE IS NOT TOTALLY SEPERABLE FROM HIS WORK LIFE. 5. ENLIGHTENED & RESPONSIBLE TRADE UNIONS------WHICH MAY PROMOTE THE STATUS OF LABOUR WITHOUT JEOPARDISING THE

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir INTERESTS OF ENTERPRISE. UNIONS TO TELL ABOUT WORKERS’ RESPONSIBILITIES TO ORG. TRADE UNIONS TO MAINTAIN GOOD RELATIONS WITH MANAGEMENT & AVOID MILITANCY & STRIKES. TRADE UNIONS TO DEVELOP & ENCOURAGE RIGHT KIND OF LEADERSHIP. INFACT POLITICALISATION & MULTIPLICITY OF UNIONS LEADS TO RIVALRY. 6. NEGOTIATING SKILLS & ATTITUDES OF MANAGEMENT & WORKERS TO BE DEVELOPED SO THAT :- ( a ) BOTH PARTIES SHOULD HAVE APPROACH TO ARRIVE AT AN AGREEMENT & NOT ONLY RAISE CONFLICTS. ( b ) PARTIES MUST HAVE CONFIDENCE ON EACH OTHER. EMPATHY & OPEN MIND ARE IMPORTANT RELIANCE ON COLLECTIVE BARGAINING IS VITAL. ( HERE EMPATHY MEANS ABILITY TO UNDERSTAND & SHARE THE FEELINGS OF ANOTHER ). ( c ) MUTUAL TRUST & RESPECT IN ORG. AND ( d ) BOTH PARTIES SHOULD DEVELOP CONSTRUCTIVE APPROACH & BELIEVE IN HONOURING AGREEMENTS.

7. PUBLIC POLICY & LEGISLATIONS-------GOVT TO INTERVENE IN

ENFORCING LABOUR LAWS SO AS TO PREVENT CONFLICTS / FIRES RATHER THAN TO TRY STOPPING THEM AFTER THEY START. 8. BETTER EDN TO WORKERS TO ADOPT SENSE OF RESPONSIBILITY & PROBLEM SOLVING APPROACH. THEY SHOULD NOT BE MISLED BY UNION LEADERS WHO HAVE THEIR OWN AXE TO GRIND THAT IS SELF INTEREST. AND 9. INDUSTRIAL EMPLOYMENT STANDING ORDERS DETERMINING TERMS & CONDITIONS OF SERVICE SHOULD BE FINALISED & EVERY EMPLOYEE SHOULD KNOW THESE.

HISTORY OF IR

# IR AS A FIELD OF STUDY & PRACTICE HAS BEEN IN EXISTENCE SINCE

THE INDUSTRIAL REVOLUTION IN UK & SINCE 1920 IN THE USA. THEHISTORY OF IR COULD BE TABULATED AS FOLLOWS :-

SR PERIOD ACTIVITY1. 1920 & 1926 IN IDIA, EMPLOYMENT RELATIONSHIPS WERE INSTITUTIONALIZED & TRADE UNION ACT WAS FORMULATED IN 1926.2. 1853 & 1855 FIRST COTTON FACTORY IN INDIA WAS SET UP AT BOMBAY IN 1853, FOLLOWED BY JUTE MILL AT CALCUTTA IN 1855.3. 1855 & 1875 FATAL ACCIDENT ACT LEGISLATION IN 1855 & WORKMEN’S BREACH OF CONTRACT ACT IN 1875--- SERVING THE INTEREST OF EMPLOYERS ONLY.4. UNDER EAST INDIA COY PURSUED A POLICY OF DELIBERATE COLONIAL DISCOURAGEMENT OF INDUSTRIALIZATION OF INDIA. RULE INDIA WAS PUSHED DOWN & KEPT AS A MARKET FOR RAW MATERIALS & FINISHED GOODS OF BRITISH MANUFACTURERS.---LONG HOURS OF WORK,

# THE PRESSURE ON THE REFORM OF LABOUR LAW, LABOUR

ADMINISTRATION & LABOUR JUDICIARY MOUNTS IN THE WAKE OF THECHALLENGES OF LPG. THERE ARE AROUND FIFTY CENTRAL LABOUR LAWS& 150 STATE LEGISLATIONS, CREATING AMBIGUITY IN IMPLEMENTATION &LABOUR ADMINISTRATION. STILL AN ORG HAS TO COMPLY WITH SEVERALLEGISLATIONS WHILE CARRYING OUT THE HR FUNCTIONS FOR CREATINGA CAPABLE & COMMITTED WORKFORCE.

LEGAL FRAMEWORK OF HRM

# HRM IS A BODY OF KNOWLEDGE & A SET OF PRACTICES THAT DEFINE

THE NATURE OF WORK & REGULATE THE EMPLOYMENT RELATIONSHIPS. ASUMMARY OF LABOUR LAWS APPLICABLE TO DIFFERENT HR FUNCTIONSOF AN ORG IS GIVEN BELOW :-

3. STATE ACTS-----BOMBAY INDUSTRIAL RELATIONS ACT; MAHARASHTRA

# THE FUTURE OF IR IN INDIA CAN BE REVIEWED FROM REPORTS OF

THE COMMISSIONS CONSTITUTED BY THE GOVT FOR THIS PURPOSE. FROMTHESE REPORTS CERTAIN ISSUES ARE EMERGING WHICH ARE POSINGCHALLENGES TO THE THREE “ACTORS”----EMPLOYERS, EMPLOYEES &GOVT-----IN THE SYSTEM THESE ISSUES ARE :- 1. COLLECTIVE BARGAINING---THIS IS AN ISSUE OF STRENGTHENING COLLECTIVE BARGAINING BY TRYING TO DETERMINE A SOLE BARGAINING AGENT FOR NEGOTIATIONS. COLLECTIVE BARGAINING IS ADVOCATED WHERE THE PARTIES HAVE A FULLER UNDERSTANDING. THIS WILL HELP TO ARRIVE AT A SPEEDIER SETTLEMENT OF DISPUTES BETWEEN THEMSELVES. THE STATE OF MAHARASHTRA HAS ALREADY PASSED A LAW FOR THE CREATION OF A SOLE BARGAINING AGENCY IN EVERY UNIT & INDUSTRY. 2. GAPS BETWEEN CENTRAL & STATE LEGISLATIONS-----THIS ISSUE RELATES TO THE GAPS THAT ARE OCCURING AS A RESULT OF THE VARIATIONS THAT OCCUR IN CENTRAL & STATE LEGISLATIONS AS FAR AS LABOUR MATTERS ARE CONCERNED. NCL ( NATIONAL COMMISSION OF LABOUR ) HAS MADE A RECOMMENDATION FOR FORMING A COMMON LABOUR CODE WHICH IS YET TO BE ADOPTED. ADOPTION OF THIS RECOMMENDATION WILL GO A LONG WAY IN SOLVING SOME OF THE PROBLEMS THAT INDIA’S LEGISLATION PROCESS IS FACING. 3. WORKERS’ PARTICIPATION IN MANAGEMENT----INDIA HAS ALREADY EXPERIENCED THE WORKING OF MANY FORMS OF WORKER- PARTICIPATION SCHEMES BUT NONE OF THEM SEEMS TO HAVE MADE ANY HEADWAY. THE REASONS FOR THE FAILURE OF THESE SCHEMES NEED TO BE PROBED INTO.

# THE THREE ACTORS IN THE SYSTEM NEED TO TAKE INTO ACCOUNT

THE EFFECT OF THEIR ACTIONS ON THE CONSUMERS & SOCIETY IN GENERAL, OWING TO THE GROWING INTER-LINKAGES BETWEEN INDUSTRY & ITS ENVIRONMENT. THEY HAVE TO EVALUATE & DECIDE ON THE APPROPRIATE ALTERNATIVES IN TERMS OF THE STRATEGY THEY ARE GOING TO ADOPT IN MANAGING THE PERSONNEL & IR FUNCTIONS.

# THE ENVIRONMENT IS FAST CHANGING & THE PRESSURES FROM

VARIOUS GPS INVOLVED ARE STARTING TO GET MORE VOCAL & INTENSE. THE STRATEGY CHOSEN FOR THE ATTAINMENT OF THE GOALS WILL HAVE TO DEPEND ON THE OBJECTIVES, VALUES, STRUCTURES AVAILABLE & THE ENVIRONMENT IN WHICH THEY HAVE TO OPERATE.

# SOME ADDITIONAL IMPORTANT SOURCES OF UNION -MANAGEMENT

CONFLICTS COULD BE SUMMERISED AS UNDER :- 1. PROFIT----BOTH AGREE ORGS TO MAKE PROFIT BUT UNIONS FEEL THEY ARE NOT GETTING ENOUGH PAY & BENEFITS. UNIONS CONTEST THE DISTRIBUTION OF PROFITS. 2. SECURITY OF JOBS----EARLIER ORG GOAL WAS TO PROVIDE JOBS. IT IS NOW REPLACED BY ORG TO PROVIDE SECURITY OF JOB DUE TO COMPETITIVE ENVIRONMENT. 3. RIGHT TO MANAGE----MANAGEMENT WOULD LIKE TO RETAIN DECISION-MAKING AUTHORITY & WARD-OFF ENCROACHMENT. HOWEVER, UNIONS SEEK TO INCREASE BARGAINING ISSUES. 4. SENIORITY----UNIONS PLEAD FOR SENIORITY PRINCIPLES FOR PROMOTION etc. & DISREGARD ABILITY AS SUBJECTIVE. HOWEVER, MANAGEMENT RESIST SENIORITY SYSTEM IN FAVOUR OF PRODUCTIVITY & MERIT.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 5. PRODUCTIVITY----WORKERS WANT MORE COMPENSATION FOR MORE PRODUCTIVITY. PRODUCTIVITY IS A RESULT OF LABOUR, CAPITAL, TECHNOLOGY & OTHER FACTORS. THE PROBLEM IS IN DETERMINING HOW MUCH IS DUE TO LABOUR & HOW MUCH DUE TO OTHER FACTORS. 6. INFLATION----LINKING WAGES TO COST OF LIVING INDEX. 7. INDUSTRIAL RELATIONS SCENE AT PRESENT-----IR ARE COMPLICATEDBY FACTORS SUCH AS---GROWING INDISCIPLINE, FREQUENT BREAK-DOWN OF LAW & ORDER & POLITICAL PRESSURES. Irs ARE IN IMPASSE. ORGs ARE BUSY IN FIRE-FIGHTING BASED ON STRATEGY OF CONFLICT. MOST OF THE PROBLEMS ARE CONNECTED WITH WEAKNESSES OF TRADE UNIONS.

# SO CHALLENGE LIES IN SEEKING STABLE-PROTECTIVE IR ENVIRONMENT

INSTEAD OF FIRE-FIGHTING. MANAGEMENT SHOULD LEARN TO LIVE WITHTHE UNION. SOME OF THE STEPS REQUIRED ARE :- 1. REFORM OF LABOUR LAWS IS OVERDUE & REQUIRES TO BE EXPEDITED. 2. COLLECTIVE BARGAINING IS THE ONLY HOPE & TO PREFER INTEGRATIVE BARGAINING RATHER THAN DISTRIBUTIVE BARGAINING. 3. MANAGEMENTS HAVE TO BUILD HEALTHY IR THROUGH CONTINUING DIALOGUE & BUILD COOPERATIVE RELATIONSHIP WITH UNIONS. 4. PRODUCE MORE & DISTRIBUTE MORE COULD BE THE SLOGAN. 5. INVOLVEMENT OF WORKERS IN SUITABLE MANAGEMENT FUNCTIONS. 6. WORKERS SHOULD BE REPRESENTED BY ELECTED MEMBERS RATHER THAN UNIONS.

# THE PROCESS OF INTEGRATING INTERESTS REQUIRES BOTH PREVENTIVE

& CURATIVE ACTIVITIES. DESPITE THE BEST OF MANAGEMENT PRACTICESIN ACTING & COMMUNICATING, CONFLICTS BETWEEN E-E WILL OCCUR. ATOTAL ABSENCE OF CONFLICT WOULD BE UNBELIEVABLE, BORING & ASTRONG INDICATION THAT SUCH CONFLICTS ARE BEING SUPPRESSED.

# ONE OF THE CHARACTERISTICS OF A MATURE GP IS ITS WILLINGNESS

& ABILITY TO BRING SUPPRESSED CONFLICTS TO THE SURFACE WHERETHEY MAY BE DISCUSSED WITH A GREATER OPPORTUNITY OFRESOLUTION. IT WOULD BE NAÏVE TO INSIST THAT ALL CONFLICTS CANBE ELIMINATED IN SOME MANNER OR OTHER, BUT THEIR EXPOSURE &DISCUSSION WILL CONTRIBUTE GREATLY TOWARD THEIR REDUCTION.

# CONFLICT PER SE IS NEITHER BAD NOR CONTRARY TO GOOD ORG.

DISAGREEMENTS & DISSATISFACTIONS CAN LEAD TO RE-EXAMINATION OFBASIC ASSUMPTIONS & PRACTICES, TO THE END THAT ADJUSTMENTS CANBE MADE TO IMPROVE OVERALL ORG EFFECTIVENESS.

WHAT IS GRIEVANCES ?

# THERE IS HARDLY A COY OR AN INDUSTRY CONCERN WHICH

FUNCTIONS ABSOLUTELY SMOOTHLY AT ALL TIMES. IN SOME, THEEMPLOYEES HAVE COMPLAINTS AGAINST THEIR EMPLOYERS, WHILE INOTHERS IT IS EMPLOYERS WHO HAVE A GRIEVANCE AGAINST THEIREMPLOYEES. THESE GRIEVANCES MAY BE REAL OR IMAGINARY, VALID ORINVALID, GENUINE OR FALSE. BROADLY SPEAKING, A COMPLAINTAFFECTING ONE OR MORE WORKERS CONSTITUTES A GRIEVANCE. ACOMPLAINT BECOMES A GRIEVANCE WHEN THE DISSATISFACTION, WHICHIS MOSTLY RELATED TO WORK, IS BROUGHT TO THE NOTICE OF THEMANAGEMENT.

# MANY MANAGEMENTS DISTINGUISH BETWEEN A “COMPLAINT” & A

GRIEVANCE. A COMPLAINT IS A DISCONTENT OR DISSATISFACTION THATHAS NOT, AS YET, ASSUMED A GREATER MEASURE OF IMPORTANCE TOTHE COMPLAINANT. COMPLAINTS ARE OFTEN SUBMITTED IN A HIGHLYINFORMAL FASHION. AN EMPLOYEE MAY COMPLAIN THAT IT IS TOO HOTIN THE SHOP, THAT ANOTHER EMPLOYEE WILL NOT COOPERATE OR THATONE HAS BEEN ASSIGNED A DISTASTEFUL JOB. THERE ARE MANY MORECOMPLAINTS THAN THERE ARE GRIEVANCES.

# A COMPLAINT BECOMES A GRIEVANCE WHEN THE EMPLOYEE FEELS

THAT AN INJUSTICE HAS BEEN COMMITTED. IF THE SUPERVISOR IGNORES

SANMAN KULKARNI 4 Industrial Relations – Rajput SirTHE COMPLAINT & THE DISSATISFACTION GROWS WITHIN THE EMPLOYEE,IT USUALLY ASSUMES THE STATUS OF A GRIEVANCE.

# A GRIEVANCE, IN BUSINESS ORG, IS ALWAYS EXPRESSED, EITHER

VERBALLY OR IN WRITING. IT CAN, OF COURSE, BE EITHER VALID ORRIDICULOUS & MUST GROW OUT OF SOMETHING CONNECTED WITH COYOPERATIONS POLICY. IN MANY INSTANCES IT MUST INVOLVE ANINTERPRETATION OR APPLICATION OF PROVISION OF THE LABOURCONTRACT.

# “ A WRITTEN COMPLAINT FILED BY AN EMPLOYEE & CLAIMING UNFAIR

TREATMENT”------DALE YODER

# “ ANY REAL OR IMAGINED FEELING OF PERSONAL INJUSTICE WHICH AN

EMPLOYEE HAS CONCERNING HIS EMPLOYMENT RELATIONSHIP”---KEITHDAVIS

# “ A GRIEVANCE IS ANY DISCONTENT OR DISSATISFACTION, WHETHER

EXPRESSED OR NOT, WHETHER VALID OR NOT, ARISING OUT OFANYTHING CONNECTED WITH THE COY WHICH AN EMPLOYEE THINKS,BELIEVES OR EVEN FEELS TO BE UNFAIR, UNJUST OR INEQUITABLE”----JUCIUS.

# “ ANY DISSATISFACTION OR FEELING OF INJUSTICE IN CONNECTION

WITH ONE’S EMPLOYMENT SITUATION THAT IS BROUGHT TO THE NOTICEOF THE MANAGEMENT”---BEACH

# “ A COMPLAINT OF ONE OR MORE WORKERS IN RESPECT OF WAGES,

# ANALYSIS OF THESE VARIOUS DEFINITIONS, IT MAY BE NOTED THAT :-

1. GRIEVANCE IS A WORD WHICH COVERS DISSATISFACTION & WHICHHAS ONE OR MORE OF THE FOLLOWING CHARACTERISTICS :- ( a ) IT MAY BE UNVOICED OR EXPRESSLY STATED BY AN EMPLOYEE. ( b ) IT MAY BE WRITTEN OR VERBAL. ( c ) IT MAY BE VALID & LEGITIMATE,UNTRUE OR COMPLETELY FALSE,OR RIDICULOUS. AND ( d ) IT MAY ARISE OUT OF SOMETHING CONNECTED WITH THE ORGOR WORK. 2. AN EMPLYEE FEELS THAT AN INJUSTICE HAS BEEN DONE TO HIM.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 3. GRIEVANCES ARE FEELINGS, SOMETIMES REAL, SOMETIMES IMAGINED, WHICH AN EMPLOYEE MAY HAVE IN REGARD TO HIS EMPLOYMENT SITUATION. 4. THE ONLY MAJOR RESTRICTION IN THESE DEFINITIONS IS THAT THE DISCONTENT MUST AFFECT WORKER PERFORMANCE.

# THE BROAD DEFINITION OF A GRIEVANCE HAS ITS VALUE AS FAR AS

BASIC MANAGERIAL PHILOSOPHY IS CONCERNED. THE MANAGER HAS TOBE CONCERNED WITH ALL DISCONTENT REGARDLESS OF A PERSONALOPINION OF THEIR VALIDITY. ONE HAS TO WATCH FOR UNEXPRESSEDDISSATISFACTIONS. THUS IT IS THE BASIS FOR A SOUND APPROACH TOTHE DEVELOPMENT OF GOOD MORALE. A MANAGER MUST KNOW THEPULSE OF THE WORKERS.

NATURE OF GRIEVANCE

# A GRIEVANCE MAY BE SUBMITTED BY A WORKER, OR SEVERAL

WORKERS, IN RESPECT OF ANY MEASURE OR SITUATION WHICH DIRECTLYAFFECTS OR IS LIKELY TO AFFECT, THE CONDITIONS OF EMPLOYMENT OFONE OR SEVERAL WORKERS IN THE ORG. WHERE A GRIEVANCE ISTRANSFORMED INTO A GENERAL CLAIM---EITHER BY THE UNION OR BY ALARGE NUMBER OF WORKERS---IT FALLS OUTSIDE THE GRIEVANCEPROCEDURE & NORMALLY COMES UNDER THE PURVIEW OF COLLECTIVEBARGAINING.

# FROM THE CAUSES OF GRIEVANCES, WE CAN DERIVE TYPES OF

# ONE AUTHOR HAS OBSERVED, “ AN EMPLOYEE’S CONCERN FOR HIS JOB

SECURITY MAY PROMPT A GRIEVANCE OVER A TRANSFER, WORKASSIGNMENT, OR PROMOTION. SOMETIMES BAD RELATIONS BETWEENSUPERVISORS & SUBORDINATES ARE TO BLAME—THIS IS OFTEN THECAUSE OF GRIEVANCES OVER FAIR TREATMENT. ORG FACTORS LIKEAUTOMATED JOBS OR AMBIGUOUS JOB DESCRIPTION THAT FRUSTRATE ORAGGRAVATE EMPLOYEES ARE OTHER POTENTIAL CAUSES OF GRIEVANCES.UNION ACTIVISM IS ANOTHER CAUSE. FOR EXAMPLE, THE UNION MAYSOLICIT GRIEVANCES FROM WORKERS TO UNDERSCORE INEFFECTIVESUPERVISION. PROBLEM EMPLOYEES ARE YET ANOTHER CAUSE OFGRIEVANCES. THESE ARE INDIVIDUALS, WHO, BY THEIR NATURE, ARENEGATIVE, DISSATISFIED & GRIEVANCE PRONE”

MACHINERY FOR REDRESSAL OF GRIEVANCES

# REDRESSAL MEANS REMEDY OR SET RIGHT AN UNDESIRABLE OR

UNFAIR SITUATION.

# ARBITRATION CAN BE BROADLY DEFINED AS A DISPUTE RESOLUTION

PROCESS IN WHICH TWO PARTIES VOLUNTARILY AGREE TO ACCEPT ANIMPARTIAL ARBITRATOR’S FINAL & BINDING DECISION ON THE MERITS OFTHE PARTIES’ DISPUTE. AN AEBITRATOR SITS AS A JUDGE OVER THEPARTIES DISPUTE, HIS OR HER DECISION IS LEGALLY BINDING ON THEPARTIES & AN ARBITRATION PROCEEDING IS LESS FORMAL THAN ACOURT TRIAL.

# A GRIEVANCE PROCEDURE IS A FORMAL PROCESS WHICH IS

PRELIMINARY TO AN ARBITRATION, WHICH ENABLES THE PARTIESINVOLVED TO ATTEMPT TO RESOLVE THEIR DIFFERENCES IN A PEACEFUL,ORDERLY & EXPEDITIOUS MANNER. IT ENABLES THE COY & THE TRADEUNION TO INVESTIGATE & DISCUSS THE PROBLEMS AT ISSUE WITHOUT INANY WAY INTERRUPTING THE PEACEFUL & ORDERLY CONDUCT OFBUSINESS. WHEN GRIEVANCE REDRESSAL MACHINERY WORKS EFFECTIVELY,IT SATISFACTORILY RESOLVES MOST OF THE DISPUTES BETWEEN LABOUR& MANAGEMENT.

# AN IMPORTANT ASPECT OF GRIEVANCE MACHINERY IS THE

REASSURANCE GIVEN TO AN INDIVIDUAL EMPLOYEE BY THE MERE FACTTHAT THERE IS A MECHANISM AVAILABLE TO HIM WHICH WILL CONSIDERHIS /HER GRIEVANCE IN A DISPASSIONATE & DETACHED MANNER & THATHIS OPINT OF VIEW WILL BE HEARD & GIVEN DUE CONSIDERATION. BUILT

# THE PRIMARY VALUE OF A GRIEVANCE PROCEDURE IS THAT IT CAN

ASSIST IN MINIMIZING DISCONTENT & DISSATISFACTION THAT MAY HAVEADVERSE EFFECTS UPON COOPERATION & PRODUCTIVITY. THE PROCEDUREALSO HAS VALUE IN THAT IT SERVES AS A CHECK ON ARBITRARYMANAGEMENT ACTION. BEING AWARE OF THE RIGHT OF EMPLOYEEAPPEAL SHOULD HELP SUPERVISORS TO AVOID THE TENDENCY TOWARDCORRUPTION & ARBITRARINESS THAT POWER & AUTHORITY OFTEN BRING.

# THE DETAILS OF A GRIEVANCE MACHINERY VARY WITH THE ORG. IT

MAY HAVE AS FEW AS TWO STEPS OR AS MANY AS TEN STEPS,DEPENDING PRIMARILY UPON THE SIZE OF THE ORG. IT MUST BECLARIFIED HERE THAT A LABOUR UNION IS NOT ESSENTIAL TO THEESTABLISHMENT & OPERATION OF A GRIEVANCE PROCEDURE.

# THE POLICY & GRIEVANCE PRICEDURE IS REQUIRED TO BE WRITTEN

BY HR MANAGER. AN EXAMPLE OF GRIEVANCE POLICY IS GIVEN BELOW :-

POLICY : GRIEVANCES

# IT IS THE POLICY OF THE COY THAT EMPLOYEES SHOULD :-

1. BE GIVEN A FAIR HEARING BY THEIR IMMEDIATE SUPERVISOR OR MANAGER CONCERNING ANY GRIEVANCES THEY MAY WISH TO RAISE. 2. HAVE THE RIGHT TO APPEAL TO A MORE Sr MANAGER AGAINST A DECISION MADE BY THEIR IMMEDIATE SUPERVISOR OR MANAGER. AND 3. HAVE THE RIGHT TO BE ACCOMPANIED BY A FELLOW EMPLOYEE OF THEIR OWN CHOICE, WHEN RAISING A GRIEVANCE OR APPEALING AGAINST A DECISION.

PROCEDURE : GRIEVANCES

# THE AIM OF THE PROCEDURE IS TO SETTLE THE GRIEVANCE AS

NEARLY AS POSSIBLE TO ITS POINT OF ORIGIN & WITHIN REASONABLE TIME.

# THE MAIN STAGES THROUGH WHICH A GRIEVANCE MAY BE

RAISED ARE AS FOLLOWS :- 1. THE EMPLOYEE ( GRIEVED ) RAISES THE MATTER WITH HIS OR HER IMMEDIATE TEAM LEADER OR MANAGER & MAY BE ACCOMPANIED BY A FELLOW EMPLOYEE OF HIS OR HER OWN CHOICE. ( HENCE THE IMPORTANCE OF AN APPOINTMENT LETTER, THROUGH WHICH THE CHANNEL OF REPORTING OR SPAN OF CONTROL IS DEFINED ). THIS SHOULD BE DONE IMMEDIATELY. 2. IF THE EMPLOYEE IS NOT SATISFIED WITH THE DECISION, THE EMPLOYEE REQUESTS A MEETING WITH A MEMBER OF MANAGEMENT WHO IS MORE Sr THAN THE TEAM LEADER OR MANAGER WHO INITIALLY HEARD THE GRIEVANCE. THIS MEETING

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir TAKES PLACE WITHIN FIVE WORKING DAYS OF THE REQUEST & IS ATTENDED BY THE MANAGER, THE MANAGER RESPONSIBLE FOR PERSONNEL, THE EMPLOYEE APPEALING AGAINST THE DECISION & IF DESIRED HIS OR HER REPRESENTATIVE. THE MANAGER RESPONSIBLE FOR PERSONNEL, RECORDS THE RESULT OF THE MEETING IN WRITING & ISSUES COPIES TO ALL CONCERNED. 3.IF THE EMPLOYEE IS STILL NOT SATISFIED WITH THE DECISION, HE OR SHE MAY APPEAL TO THE APPROPRIATE DIRECTOR. THE MEETING TO HEAR THIS APPEAL IS HELD WITHIN FIVE WORKING DAYS OF THE REQUEST & IS ATTENDED BY THE DIRECTOR, THE MANAGER RESPONSIBLE FOR PERSONNEL, THE EMPLOYEE MAKING THE APPEAL & IF DESIRED, HIS OR HER REPRESENTATIVE. THE MANAGER RESPONSIBLE FOR PERSONNEL, RECORDS THE RESULTS OF THIS MEETING IN WRITING & ISSUES COPIES TO ALL CONCERNED. ( PLEASE NOTE HERE THAT TIME FRAME MUST BE DEFINED IN THE PROCEDURE, WHICH VARIES FROM ORG TO ORG. THE GRIEVANCES MUST BE RESOLVED IMMEDIATELY OR AT THE EARLIEST ----THIS ASPECT IS REQUIRED TO BE DEVELOPED BY HR MANAGERS )

# A GRIEVANCE PROCEDURE IS A FORMAL PROCESS WHICH IS

PRELIMINARY TO AN ARBITRATION, WHICH ENABLES THE PARTIESINVOLVED TO ATTEMPT TO RESOLVE THEIR DIFFERENCES IN A PEACEFUL,ORDERLY & EXPEDITIOUS MANNER. IT ENABLES THE COY & THE TRADEUNION TO INVESTIGATE & DISCUSS THE PROBLEM AT ISSUE WITHOUT INANY WAY INTERRUPTING THE PEACEFUL & ORDERLY CONDUCT OFBUSINESS. WHEN THE GRIEVANCE REDRESSAL MACHINERY WORKSEFFECTIVELY, IT SATISFACTORILY RESOLVES MOST OF THE DISPUTESBETWEEN LABOUR & MANAGEMENT.

# AN OPEN-DOOR POLICY, WHEREIN A GRIEVED EMPLOYEE CAN DIRECTLY

APPROACH THE HEAD OF THE FIRM & GENERALLY APPLICABLE FOR SMALLSCALE COYS. FOR BIGGER COYS A STEP-LADDER TYPE PROCEDURE ISGENERALLY FOLLOWED.

# BASIC ELEMENTS OF A GRIEVANCE PROCEDURE--- THESE COULD

BE :- 1. THE EXISTANCE OF A SOUND CHANNEL THROUGH WHICH A GRIEVANCE MAY PASS FOR REDRESSAL IF THE PREVIOUS STAGE OR CHANNEL HAS BEEN FOUND TO BE INADEQUATE, UNSATISFACTORY OR UNACCEPTABLE. 2. THE PROCEDURE SHOULD BE SIMPLE, DEFINITE & PROMPT, FOR ANY COMPLEXITY OR VAGUENESS OR DELAY MAY LEAD TO AN AGGRAVATION OF THE DISSATISFACTION OF THE AGGRIEVED EMPLOYEE. AND 3. THE STEPS IN HANDLING A GRIEVANCE SHOULD BE CLEARLY DEFINED. 4. THESE SHOULD COMPRISE OF :- ( a ) RECEIVING & DEFINING THE NATURE OF THE GRIEVANCE. ( b ) GETTING AT THE RELEVENT FACTS, ABOUT THE GRIEVANCE. ( c ) ANALYSING THE FACTS, AFTER TAKING INTO CONSIDERATION THE ECONOMIC, SOCIAL, PSYCHOLOGICAL & LEGAL ISSUES INVOLVED IN THEM. ( d ) TAKING AN APPROPRIATE DECISION AFTER A CAREFUL CONSIDERATION OF ALL THE FACTS. AND

5. WHATEVER THE DECISION, IT SHOULD BE FOLLOWED UP IN ORDER

THAT THE REACTION TO THE DECISION MAY BE KNOWN & IN ORDER TO DETERMINE WHETHER THE ISSUE HAS BEEN CLOSED OR NOT.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir# IT IS RELEVENT TO NOTE THAT THE MANAGEMENT IS OFTEN GUILTYOF ERRORS IN ITS HANDLING OF THE GRIEVANCE REDRESSALPROCEDURE. THESE ERRORS COULD BE :- 1. STOPPING TOO SOON THE SEARCH FOR FACTS. 2. EXPRESSING THE OPINION OF THE MANAGEMENT BEFORE ALL THE PERTINENT FACTS HAVE BEEN UNCOVERED & EVALUATED. 3. FAILING TO MAINTAIN PROPER RECORDS. 4. RESORTING TO AN EXECUTIVE FIAT ( MEANS AN OFFICIAL ORDER OR AUTHORISATION ) INSTEAD OF DISPASSIONATELY DISCUSSING THE FACTS OF THE GRIEVANCE OF THE EMPLOYEE. 5. COMMUNICATING THE DECISION TO THE GRIEVANT IN AN IMPROPER WAY. 6. TAKING A WRONG OR HASTY DECISION, WHICH THE FACTS OR CIRCUMSTANCES OF THE CASE DO NOT JUSTIFY.

SUCCESSFUL GRIEVANCE HANDLING PROCEDURES

# AN ANLYSIS OF SUCCESSFUL GRIEVANCE HANDLING PROCEDURES

INDICATES THAT THE FOLLOWING FACTORS ARE INVOLVED IN THEM :- 1. HELPFUL ATTITUDE & SUPPORT OF THE MANAGEMENT. 2. BELIEF ON THE PART OF ALL CONCERNED IN THE UTILITY OF THE PROCEDURE. 3. INTRODUCTION OF THE PROCEDURE WITH THE CONCURRENCE OF THE EMPLOYEES’ REPRESENTATIVE OR THEIR TRADE UNIONS. 4. SIMPLE, FAIR, EASILY UNDERSTANDABLE & QUICK HANDLING PROCEDURE COTAINING A TIME LIMIT FOR EACH STEP. 5. DEFINING COY’S POLICIES, RULES & PRACTICES & AVAILABILITY OF COPIES AT DIFFERENT MANAGEMENT LEVELS INVOLVED IN THE PROCEDURE. 6. DELEGATION OF APPROPRIATE AUTHORITY SO THAT ACTION MAY BE TAKEN AT ALL LEVELS OF THE MANAGEMENT. 7. THE FUNCTIONING OF THE HR DEPT IN AN ADVISORY CAPACITY AT AL THE LEVELS OF THE MANAGEMENT. 8. A FACT-ORIENTED, INSTEAD OF AN EMPLOYEE-ORIENTED, DISCUSSION OF GRIEVANCES. 9. RESPECT FOR THE DECISION TAKEN AT EACH LEVEL OF THE MANAGEMENT. 10. ADEQUATE PUBLICITY GIVEN TO THE PROCEDURE & ITS ACHIEVEMENTS IN THE COY. AND 11. A PERIODIC REVIEW OF THE WORKING OF THE PROCEDURE.

CERTAIN PROCEDURAL MATTERS IN DEALING WITH GRIEVANCE

REDRESSAL

# THESE COULD BE :- 1. WHEN A GRIEVANCE ARISES OUT OF AN ORDER ISSUED BY THE MANAGEMENT, THE ORDER ITSELF MUST BE COMPLIED WITH BEFORE THE PROCEDURE IS ACTIVATED. 2. THE RIGHT OF THE WORKERS’ REPRESENTATIVE ON THE GRIEVANCE COMMITTEE TO SEE A DOCUMENT & THE RIGHT OF THE MANAGEMENT’S REPRESENTATIVE TO REFUSE TO SHOW A DOCUMENT

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir OF A COFIDENTIAL NATURE. CONFIDENTIAL; DOCUMENTS SHALL NOT BE USED AGAINST HIM.3. THERE IS A LIMIT OF 72 HOURS WITHIN WHICH AN APPEAL CAN BE TAKEN FROM ONE STEP TO ANOTHER.4. PAYMENT FOR TIME THAT HAS BEEN SPENT ON THE REDRESSAL OF GRIEVANCE. AND5. IN THE EVENT OF A GRIEVANCE ARISING OUT OF DISCHARGE OR DISMISSAL, THE WORKER HAS THE RIGHT TO APPEAL EITHER TO THE DISMISSING AUTHORITY OR TO A Sr BODY, SPECIFIED FOR THE PURPOSE BY THE MANAGEMANT, WITHIN A WEEK FROM THE DATE OF DISMISSAL OR DISCHARGE.DISCIVERY OF GRIEVANCES

# KNOWLEDGE ABOUT GRIEVANCE IS IMPORTANT IN HANDLING THEM.

ONE CAN COME TO KNOW ABOUT GRIEVANCES THROUGH GOSSIP &GRAPEVINE OR THROUGH UNIONS. IT IS ALWAYS PREFERABLE TO HAVEFIRST HAND KNOWLEDGE BASED ON OBSERVATION & THROUGH DIRECTCOMN FROM THE EMPLOYEE CONCERNED. SOME OF THE IMPORTANTWAYS OF DISCOVERING GRIEVANCES ARE GIVEN BELOW :- 1. DIRECT OBSERVATION---AN EFFECTIVE MANAGER MUST KNOW HOW HIS SUBORDINATES BEHAVE IN ORDINARY CIRCUMSTANCES., THAT IS KNOWING THE PULSE OF YOUR SPAN OF MANAGEMENT. WHEN SIGNIFICANT CHANGES IN THAT BEHAVIOUR OCCUR, IT IS SURE TO AFFECT PERFORMANCE. 2. GRIEVANCE PROCEDURE----THIS PROVIDES AN OPPORTUNITY TO GIVE VENT TO ONES GRIEVANCES. THE DILEMMA MOST MANAGERS FACE IS WHETHER & HOW FAR THEY SHOULD ENCOURAGE OR DISCOURAGE GRIEVANCES. IF MANAGEMENT DOES NOT INDUCE EMPLOYEES TO EXPRESS THEIR GRIEVANCES, UNIONS WILL DO SO & THEY ARE LIKELY TO BLOW THE SITUATION. DISCOURAGING EMPLOYEES FROM EXPRESSING GRIEVANCES MEANS IGNORING GRIEVANCES. WHEN THEY SIMMER & BURST, MANAGEMENTS FIND IT BEYOND THEIR CAPACITY TO DEAL WITH THEM ADEQUATELY. THIS IS THE START OF A STRKE. 3. GRIPE BOXES-----THE GRIPE BOX IS A FACILITY TO FILE ANONYMOUS COMPLAINTS ABOUT THE VARIOUS CAUSES OF DISCONTENT & DISSATISFACTION IN THE ORG. IT IS DIFFERENT FROM SUGGESTION SCHEME. IN CASE OF GRIPE BOX ANONYMITY IS ASSURED & THERE IS NO REWARD OR PUNISHMENT. THE LIMITED PURPOSE IS TO LET THE MANAGEMENT KNOW WHAT THE EMPLOYEES FEEL WITHOUT FEAR OF VICTIMISATION. 4. OPEN-DOOR POLICY---MOST ORGS PREACH OPEN-DOOR POLICY BUT DO NOT PRACTICE IT. 5. EXIT INTERVIEW-----IT REQUIRES CERTAIN SKILLS TO GET TO KNOW THE REAL REASONS FOR LEAVING THE JOB. EXIT INTERVIEWS, IF CONDUCTED EFFECTIVELY, CAN PROVIDE VITAL INFO TO OMPROVE PERSONNEL POLICIES & IDETIFY THE WEAKNESSES & STRENGTHS OF THE ORG. SOME ORGS MAIL AN EXIT QUESTIONNAIRE THREE MONTS AFTER AN EMPLOYEE LEAVES SO THAT HE NEED NOT FEAR ABOUT A POOR REFERENCE & GIVE THE TRUTH, WITHOUT FEAR OR FAVOUR.

THE COLLECTIVE BARGAINING

# INITIALLY, INDIVIDUAL EMPLOYEES NEGOTIATED DIRECTLY WITH A

POTENTIAL EMPLOYER ON THE WAGES THEY WOULD RECEIVE FOR THESERVICES PROVIDED.WITH THE GROWTH OF POPULATION & THE PACE OF INDUSTRIALISATION,LARGE NUMBER OF PEOPLE ENTERED THE LABOUR MARKET. THISBROUGHT ABOUT SEVERAL CHANGES.

# INDIVIDUAL EMPLOYERS & EMPLOYEES DID NOT FIND IT CONVENIENT

ANY MORE TO NEGOTIATE INDIVIDUALLY, OWING TO THE PRESSURE OFTIME, VARIANCES IN REWARDS FOR THE SERVICES RENDERED & THEABILITY TO PUSH FOR MORE AS A GP ON THE EMPLOYEES’ PART.

SANMAN KULKARNI 4 Industrial Relations – Rajput SirEMPLOYERS ALSO FOUND IT MORE CONVIENT TO DEAL WITH A GPRATHER THAN INDIVIDUALS.

# THIS LED TO THE CONCEPT OF “COLLECTIVE BARGAINING”. THIS

CONCEPT WAS FIRST IDENTIFIED BY SIDNEY & BEATRICE WEBB INBRITAIN & ALSO BY GOMPERS IN THE USA.

WHAT IS COLLECTIVE BARGAINING ?

# IT IS A PROCESS THROUGH WHICH REPRESENTATIVES OF MANAGEMENT

& THE UNION MEET TO NEGOTIATE A LABOUR AGREEMENT. ( NEGOTIATIONIS A PROCESS THROUGH WHICH TWO OR MORE PARTIES MOVE FROMTHEIR INITIALLY DIVERGENT POSITIONS TO A POINT WHERE AGREEMENTIS REACHED.)

# THE INDUSTRIAL RELATIONS SYSTEM IS REGULATED BY THE PROCESS

OF COLLECTIVE BARGAINING WHICH IS A SOCIAL PROCESS THATCONTINUALLY TURNS DISAGREEMENTS INTO AGREEMENTS IN AN ORDERLYFASHION.

# COLLECTIVE BARGAINING ( CB ) AIMS TO ESTABLISH BY NEGOTIATION &

DISCUSSION AGREED RULES & DECISIONS ON THE MATTERS OF MUTUALCONCERN TO EMPLOYERS & UNIONS AS WELL AS METHODS OFREGULATING THE CONDITIONS GOVERNING EMPLOYMENT.

DEFINITIONS OF COLLECTIVE BARGAINING

# ENCYCLOPAEDIA OF SOCIAL SCIENCES DEFINES AS---“ A PROCESS OF

DISCUSSION & NEGOTIATION BETWEEN TWO PARTIES; ONE OR BOTH OFWHOM IS A GP OF PERSONS ACTING IN CONCERT. THE RESULTINGBARGAIN IS AN UNDERSTANDING AS TO THE TERMS OR CONDITIONSUNDER WHICH A CONTINUING SERVICE IS TO BE PERFORMED”

# OXFORD DICTIONARY OF HRM DEFINES AS, “THE PROCESS THROUGH

WHICH TRADE UNIONS & EMPLOYERS NEGOTIATE COLLECTIVEAGREEMENTS THAT SET THE RATES OF PAY & TERMS & CONDITIONS OFEMPLOYMENT OF WORKERS. IT IS ALSO A PROCESS OF JOINT REGULATION& CAN BE DIFFERENTIATED FROM UNILATERAL REGULATION OFEMPLOYMENT BY EMPLOYERS OR UNIONS & LEGAL REGULATION THROUGHTHE STATE”

# THE INTERNATIONAL LABOUR ORGANISATION ( ILO ) DEFINE CB AS, -----

“ NEGOTIATION ABOUT WORKING CONDITIONS & TERMS OFEMPLOYMENT BETWEEN AN EMPLOYER, A GP OF EMPLOYEES OR ONE ORMORE EMPLOYERS’ ORGANIZATIONS, ON THE ONE HAND & ONE OR MOREREPRESENTATIVE WORKERS’ ORGANIZATIONS ON THE OTHER WITH AVIEW TO REACHING AGREEMENT.”

# WHAT DO WE LEARN FROM THESE DEFINITIONS ?-----THESE DEFINITIONS

LEAD US TO CERTAIN CHARACTERISTICS & SALIENT FEATURES OF CBWHICH COULD BE :-

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir1. THE PROCESS IS “ COLLECTIVE” BECAUSE ISSUES RELATING TO TERMS & CONDITIONS OF EMPLOYMENT ARE SOLVED BY REPRESENTATIVES OF EMPLOYEES & EMPLOYERS IN GPS RATHER THAN AS INDIVIDUALS.2. IT IS ESSENTIALLY A GP ACTIVITY RATHER THAN AN INDIVIDUAL OR UNILATERALK ACTION.3. FLEXIBLE ATTITUDE OF BOTH THE MANAGEMENT & THE UNION IS ENCOURAGED.4. IT IS A BILATERAL ( INVOLVING TWO PARTIES ) PROCESS.5. IT IS AN ONGOING & DYNAMIC PROCESS.6. IT IS COMPLEX IN NATURE BECAUSE OF THE PROCESS & TECHNIQUES ADAPTED IN RESOLVING THE ISSUE.7. IT PERFORMS LEGISLATIVE, JUDICIAL & EXECUTIVE FUNCTIONS. ( LEGISLATIVE MEANS RELATING TO LAWS).8. IT IS BOTH AN ART & SCIENCE.9. IT IS A PROCESS IN THE SENSE THAT IT CONSISTS OF A NUMBER OF STEPS. THE STARTING POINT IS THE PRESENTATION OF THE CHARTER OF DEMANDS & THE LAST STAGE IS THE REACHING OF AN AGREEMENT, OR A CONTRACT WHICH WOULD SERVE AS THE BASIC LAW GOVERNING LABOUR-MANAGEMENT RELATIONS OVER A PERIOD OF TIME IN AN ORG.10. IT IS DISTINCTIVE IN NATURE AS THE RULES ARE MADE BY THE UNIONS OF WORKERS, EMPLOYERS & ORGS.11. IT IS GOVERNED BY THE CONVENTIONS & CUSTOMS THAT PREVAIL AT THE COY LEVEL.12. IT IS NOT JUST AN ECONOMIC PROCESS BUT MORE A SOCIO- ECONOMIC ONE. THE VALUES, ASPIRATIONS & EXPECTATIONS ALSO PLAY A SIGNIFICANT ROLE.

PREREQUISITES FOR SUCCESSFUL CB

# ADAPTING A SYSTEM IN THE ORG DOES NOT GUARANTEE SUCCESS.

THE IMPLEMENTATION OF THE POLICIES IN SPIRIT & ACTION DETERMINESTHE SUCCESS & EFFECTIVENESS. THIS EFFECTIVENESS OF COLLECTIVEBARGAINING DEPENDS ON CERTAIN FUNDAMENTAL PREREQUISITES, WHICHCOULD BE :- 1. CONGENIAL ENVIRONMENT---A SYSTEM BECOMES EFFECTIVE ONLY WHEN IT HAS BEEN PROPERLY ACCEPTED & IMPLEMENTED. WORK ENVIRONMENT IS VERY IMPORTANT FOR THE SUCCESS OF CB. PEOPLE INVOLVED IN THIS PROCESS SHOULD HAVE A STRONG BELIEF OF DEMOCRACY & MUTUAL SOLUTION TO THE PROBLEM. MUTUAL TRUST, RESPECT & UNDERSTANDING BETWEEN THE EMPLOYER & THE EMPLOYEE DEVELOPS A CONGENIAL ENVIRONMENT TO DEBATE, NEGOTIATE & TAKE A DECISION. 2. SOCIA-POLITICAL SITUATION---IT ESSENTIAL TO UNDERSTAND THE PREVAILING SOCIO-POLITICAL SITUATION SURROUNDING THE ORG & THE STRATEGIC DYNAMICS OF THE NEGOTIATION FOR BOTH THE MANAGEMENT & THE UNION TO MAKE THE PROCESS EFFECTIVE. 3. PSYCHOLOGICAL CONSIDERATIONS-----IT IS IMPORTANT TO UNDERSTAND THE HUMAN SIDE OF THE DECISIONS RATHER THAN RULES & REGULATIONS. THIS WILL DEVELOP GOODWILL, MUTUAL COMMITMENT & COOPERATION, WHICH IS ESSENTIAL OBJECTIVE OF IR.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 4. MATURITY OF THE PEOPLE-----THE KNOWLEDGE OF THE TECHNIQUES OF COLLECTIVE BARGAINING IS VERY MUCH IMPORTANT. THE EDUCATION, EXPOSURE & BELIEF IN THE SYSTEM ARE SOME OF THE FACTORS, WHICH INFLUENCE THE MATURITY OF THE PERSON. 5. NEGOTIATING TEAM---THE TEAM SHOULD BE SO SELECTED THAT DECISIONS ARE ARRIVED AT WITH NO OR MINIMUM REFERRALS TO THE TOP MANAGEMENT. THE TEAM SHOULD HAVE A MIXED COMPOSITION. 6. RECOGNISE THE UNION-----IT IS NECESSARY FOR THE MANAGEMENT TO RECOGNISE THE UNION & TO BARGAIN IN MORE GOOD FAITH. STRONG UNIONS & PROGRESSIVE MANAGEMENTS CAN HELP CREATE AN ATMOSPHERE OF MUTUAL CONFIDENCE. 7. APPROACH----OPEN MINDS, TO LISTEN & APPRECIATE THE OTHERS’ CONCERN & POINT OF VIEW & TO HAVE SOME FLEXIBILITY IN MAKING ADJUSTMENTS TO THE DEMANDS MADE. 8. HOMEWORK---THE DEMANDS PRESENTED MUST BE STUDIED IN ADVANCE TO GATHER DATA ON WAGES & WELFARE BENEFITS; THAT IS BENCH-MARKING. 9. IDENTIFICATION—BOTH THE MANAGEMENT & THE UNIONS SHOULD BE ABLE TO IDENTIFY GRIEVANCES, SAFETY & HYGIENE PROBLEMS ON ROUTINE BASIS & TAKE APPROPRIATE REMEDIAL STEPS. 10. INTERNAL UNION DEMOCRACY----TRADE UNIONS SHOULD ENCOURAGE INTERNAL UNION DEMOCRACY & HAVE PERIODIC CONSULTATIONS WITH THE RANK & FILE MEMBERS. 11. PRODUCT / SERVICES---TRADE UNIONS SHOULD EQUALLY BE CONCERNED WITH BOTH QUANTITY OF WORK OUTPUT AS AGREED UPON & QUALITY OF WORK, BOTH LEADING TO A CONSISTENT CONCERN FOR THE VIABILITY OF THE COY & ITS PRODUCT / SERVICES. 12. PERIODIC DISCUSSIONS---THESE MUST BE BETWEEN MANAGEMENT & THE UNION TO INTERPRET THE PROVISIONS OF THE CONTRACT & CLARIFY DOUBTS. THIS IS LIKELY TO HELP IN AVOIDING STRIKES / LOCKOUTS.

COLLECTIVE BARGAINING PROCESS

# CB IS A PROCESS WHICH CONSISTS OF FOLLOWING STAGES :-

1. PRESENTATION OF PROPOSALS BY UNIONS TO THE MANAGEMENT.

2. HOME-WORK ON THESE PROPOSALS BY BOTH PARTIES. 3. NEGOTIATION OF PROPOSALS LEADING TO AGREEMENT. 4. IMPLEMENTATION OF AGREEMENT. AND 5. REVIEW & RENEWAL OF AGREEMENT.

# PRESENTATION OF PROPOSALS----MANY ORGS TERM IT AS DEMANDS BY

UNIONS. THE CB PROCESS USUALLY STARTS WITH PROPOSAL / DEMANDSBEING PRESENTED TO THE MANAGEMENT BY UNIONS. A FRESH PROPOSALIS SUBMITTED UPON THE EXPIRY OF THE EARLIER AGREEMENT. BUT ITWOULD BE PREFERABLE TO GET THESE FRESH PROPOSALS WELL BEFORETHE EXPIERY OF EXISTING AGREEMENT SO THAT THE NEW AGREEMENT

# HOME-WORK---THE PROPOSALS ARE STUDIED TO EVALUATE THE

# NEGOTIATION OF PROPOSALS----AFTER THE HOME-WORK, BOTH PARTIES

START NEGOTIATING & TRY TO ARRIVE AT AN AGREEMENT.( NEGOTIATION IS A PROCESS THROUGH WHICH TWO OR MORE PARTIESMOVE FROM THEIR INITIALLY DIVERGENT POSITIONS TO A POINT WHEREAGREEMENT IS REACHED.) FOR THIS, BOTH PARTIES HAVE TO MAKENECESSARY PREPARATIONS FOR JUSTIFYING RESPECTIVE STANDS.NEGOTIATIONS REFLECT A SENSE OF COMPROMISE IN A GIVE & TAKESPIRIT & ALSO MANIPULATION POWER EQUILIBRIUM BETWEEN PARTIES.COMPLETION OF NEGOTIATIONS LEAD TO AN AGREEMENT WHICH WHENSIGNED BY BOTH PARTIES BECOMES A CONTRACT BETWEEN THE UNION& THE MANAGEMENT FOR A DEFINED PERIOD OF TIME.

# IMPLEMENTATION OF AGREEMENT----THE CONTENTS OF THE AGREEMENT

ARE COMMUNICATED TO ALL FOR EXECUTION. THIS IS CLOSELYOBSERVED BY IR / HR DEPT TO ENSURE THAT NO DISPUTES ORPROBLEMS ARISE.

# REVIEW & RENEWAL---NORMALLY THESE AGREEMENTS ARE VALID FOR

A SPECIFIED PERIOD; GENERALLY FOR THREE YEARS. DURING THIS TIME,BOTH PARTIES MUST REVIEW THE IMPLEMENTATION & SHOULD THERE BEANY REQUIREMENT FOR REVISION / REVIEW MUST BE DONE. THUS THE CBIS A CONTINUOUS PROCESS.

# THE END OBJECTIVE OF CB SHOULD BE THAT BOTH PARTIES TRY TO

ACHIEVE “I AM OK” SITUATION WITH A VIEW TO ACHIEVE MAXPRODUCTION & IMPROVE QUALITY OF LIFE.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 7. MAKE PLENTY OF PROPOSALS TO ENHANCE THE OPPORTUNITIES TO COME TO A SOLUTION. 8. BE PREPARED TO COMPROMISE. 9. ACCEPT TO GET RESULTS GRADUALLY. 10. PRESERVE GOOD MANNERS & KEEP DISCUSSION FOCUSED ON RELEVENT ISSUES. AND 11. BE PREPARED TO STAND ALONG ANY HARD STRIKE OR LOCK- OUT---MEANS CONTINGENCY PLANNING SHOULD BE IN THOUGHT OF.

TACTICS USED IN COLLECTIVE BARGAINING

1. ANTICIPATE --- THE PROPOSALS / DEMANDS, THE INTENTION OF THE

DEMANDS, & ALSO THE DIRECTION IN WHICH THESE WILL BE PRESENTED OR PLACED. 2. TEAM SPIRIT--- SHOULD BE MAINTAINED THROUGHOUT THE NEGOTIATIONS. IT REQUIRES SYNCHRONIZATION OF THE TEAM MEMBERS’ VIEWS DURING THE DISCUSSION. A REHEARSAL BEFOREHAND MAY CLEAR THE ROLE & RESPONSIBILITY OF EACH OF THE MEMBER. 3. SEPARATE RESPONSIBILITIES FROM PROBLEMS---THIS WILL PROVIDE A PLATFORM TO GIVE IMPORTANCE ON ISSUES & NOT THE PEOPLE BEHIND THE ISSUES. 4. COUNTER PROPOSAL---THE MANAGEMENT SHOULD PRESENT A COUNTER PROPOSAL AGAINST THE DEMAND RAISED BY THE UNION. e. g. IF A DEMAND IS ON WAGE HIKE, THE MANAGEMENT SHOULD RAISE THE ISSUE OF PRODUCTIVITY, WORKLOAD etc. 5. EMOTIONAL MATURITY---- MUST BE MAINTAINED BY BOTH MEMBERS OF UNION T THE REPRESENTATIVES OF MANAGEMENT. PATIENT LISTENING & MUTUAL UNDERSTANDING WILL FACILITATE THE PROCESS OF DECISION-MAKING. 6. PROPER MANAGEMENT REPRESENTATIVES -----PERSONS WITH PROPER AUTHORITY TO COMMIT & STANDBY SHOULD BE DEPUTED BY THE MANAGEMENT AT THE NEGOTIATION TABLE. PRESENCE OF A Jr RANK PERSON WILL SEND A WRONG SIGNAL TO THE UNION REGARDING THE SERIOUSNESS OF THE MANAGEMENT. 7. PHASE OUT THE ISSUES--- IT IS DESIRABLE TO TAKE UP THE ISSUES WHICH DO NOT COST OR COST LESS TO THE MANAGEMENT INITIALLY & THEN SWITCH OVER TO HIGH COST INVOLVEMENT ITEMS. THIS WILL CREATE A GOOD ENVIRONMENT FOR NEGOTIATIONS. 8. SAFETY VALVE-----EVEN IF THE NEGOTIATION IS DIFFICULT, THERE SHOULD BE SAFETY VALVE WHICH SHOULD NOT BE CROSSED BY THE NEGOTIATING TEAMS EXCEPT IN EXCEPTIONAL CIRCUMSTANCES. 9. BE GOOD LISTENER----IT IS NOT DESIRABLE TO TALK MUCH WITHOUT ALLOWING THE OTHER PARTY TO SPEAK. IT GIVES THE OTHER PARTY YOUR POSITION BUT LEAVES YOU WITH LITTLE KNOWLEDGE OF HIS POSITION & POTENTIAL TRADE-OFF. 10. DO NOT GIVE-UP---THE PARTIES INVOLVED IN THE NEGOTIATIONS SHOULD NOT GIVE UP TOO SOON OR BACK OFF TOO QUICKLY.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 11. JUDGE THE PARTIES---IT IS NOT DESIRABLE TO UNDERESTIMATE OR OVERESTIMATE THE OTHER PARTY. 12. GOOD END—THE RESULT OF A COLLECTIVE BARGAINING STRATEGY SHOULD END IN A GOOD AGREEMENT OR SETTLEMENT.

TYPES OR FORMS OF CB

# THERE ARE TWO BASIC FORMS OR TYPES AS

IDENTIFIED BY CHAMBERLAIN & KUHN ( 1965 ) WHICHARE :- 1. CONJUNCTIVE BARGAINING-----WHICH ARISES FROM THE ABSOLUTE REQUIREMENT THAT SOME AGREEMENT BE REACHED SO THAT THE OPERATIONS ON WHICH THESE ARE DEPENDENT, MAY CONTINUE & RESULT IN A WORKING RELATIONSHIP. 2. COOPERATIVE BARGAINING------IN WHICH IT IS RECOGNIZED THAT EACH PARTY IS DEPENDENT ON THE OTHER & CAN ACHIEVE ITS OBJECTIVES MORE EFFECTIVELY IF IT WINS THE SUPPORT OF THE OTHER.

# A SIMILAR DISTINCTION WAS MADE BY WALTON &

McKERSIE ( 1965 ) :- 1. DISTRIBUTIVE BARGAINING------WHICH IS THE COMPLEX SYSTEM OF ACTIVITIES INSTRUMENTAL TO THE ATTAINMENT OF ONE PARTY’S GOAL WHEN THEY ARE IN BASIC CONFLICT WITH THOSE OF THE OTHER PARTY. 2. INTEGRATIVE BARGAINING-----WHICH IS THE SYSTEM OF ACTIVITIES WHICH ARE NOT IN FUNDAMENTAL CONFLICT WITH THOSE OF THE OTHER PARTY & WHICH THEREFORE CAN BE INTEGRATED TO SOME DEGREE. THIS IS BASICALLY AN AREA OF COMMON CONCERN.

TRENDS IN COLLECTIVE BARGAINING

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir# CB IS A VERY IMPORTANT & MOST EFFECTIVEINSTRUMENT IN THE HANDS OF THE WORKERS TOBETTER THEIR CONDITIONS. THIS IMPORTANCE HASFOLLOWING FACTORS :- 1. IT IS BEST SUITED FOR THE CONCEPT OF INDUSTRIAL DEMOCRACY. THE UNIONS GET AN OPPORTUNITY TO ACQUINT THE EMPLOYER WITH THE VIEW POINT OF UNION MEMBERS & THEIR SPECIAL PROBLEMS. 2. IT ENSURES AN IMPROVED STATUS FOR WORKERS. 3. ENSURES LASTING INDUSTRIAL PEACE.-----CB IS NOT A METHOD OF SETTLING DISPUTES ONLY BUT ALSO FOR ITS PREVENTION. IT CAN DISPEL CONFLICTS. AND 4. IT FOSTERS RESPONSIBILITY ON THE PART OF BOTH WORKERS & EMPLOYERS.---PARTIES WHO HAVE REACHED AN AGREEMENT HAVE RESPONSIBLE BEHAVIOUR THAN IF IMPOSED BY THE DECISION OF THIRD PARTY.

# EXTENSION IN ALL BRANCHES OF INDUSTRIES-----CB

NOW EXTENDS TO MOST BRANCHES OF INDUSTRIES INTHE ORGANISED SECTORS. INITIALLY CB WAS FOUNDIN SOME OF THE TRADITIONAL INDUSTRIES LIKECOTTON & JUTE TEXTILES. WHEREAS NOW MOST OFTHE INDUSTRIES ARE FOLLOWING CB.

# LEVEL OF BARGAINING-----UNDER THIS PATTERN OF

BARGAINING, THE MANAGEMENT NEGOTIATES ON ANATIONAL BASIS WITH THE REPRESENTATIVES OF THEUNIONS OF DIFFERENT UNITS UNDER THEIR CONTROL---LIKE SAIL, BHEL, COAL etc.

# COORDINATION IN BARGAINING---PARTIES IN SEVERAL

INDUSTRIES HAVE TAKEN STEPS TO INCREASE THEEFFEECTIVENESS OF THE CB SYSTEM. THIS HASINCLUDED THE ESTABLISHMENT OF COORDINATIONAGENCIES FOR PROMOTING UNITY IN APPROACHESAMONG THE EMPLOYING INTEREST TOWARDS THEISSUES AT STAKE. THIS KIND OF EFFORT HAS BEENMADE BY THE PUBLIC ENTERPRISES IN BANGLOREWHERE SUCH ENTERPRISES ARE CONCENTRATED. INTHAT CENTRE A COORDINATION COMMITTEE OF THECHIEF EXECUTIVES OF THE ENTERPRISES HAD BEENFORMED TO FUNCTION AS A JOINT BODY TO DEALWITH ISSUES OF COMMON CONCERN SUCH AS WAGES& SERVICE CONDITIONS. ON THE EMPLOYEES’ SIDE,TOO, THE UNIONS HAVE SET UP A JOINT BODY TONEGOTIATE WITH MANAGEMENT ON THE BASIS OFUNITED STRENGTH ( ESPRIT-de-CORPS)

# DIVERSITY IN BARGAINING PROCEDURES----AT

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir 1. AT PLANT-LEVEL BARGAINING THE PROCEDURE CONSISTS IN MOST CASES OF SINGLE-EMPLOYER- SINGLE UNION & IN SOME CASES SINGLE EMPLOYER & MULTI UNION, THROUGH A NEGOTIATING COMMITTEE. 2. AT INDUSTRY BARGAINING-----VARIED PROCEDURES ARE FOLLOWED. :- ( a ) IN JUTE / TEXTILE INDUSTRY, IN WEST BENGAL, THE NEGOTIATIONS ARE CONDUCTED IN A TRIPARTITE COMMITTEE WHICH CONSISTS OF REPRESENTATIVES OF MILL- OWNERS & TRADE UNION CENTRES & A NOMINEE OF THE STATE GOVT WHO CHAIRS THE MEETING. ( b ) THE STEEL INDUSTRT----THE PROCESS OF BARGAINING HAS BEEN INITIATED FROM OUTSIDE BY THE GOVT OF INDIA WHO AFTER DETAILED DISCUSSIONS WITH THE REPRESENTATIVES OF EMPLOYERS & UNIONS SET UP A JOINT WAGE NEGOTIATION COMMITTEE. THE COMMITTEE IS COMPOSED OF MANAGEMENT REPRESENTATIVES OF THE ALL STEEL PLANTS IN THE PRIVATE & PUBLIC SECTORS & THE REPRESENTATIVES OF THE RECOGNISED UNIONS IN THOSE PLANTS.

# THE PROCESS OF CB AT THE INDUSTRIAL LEVEL

DOES NOT REPRESENT PURELY A BIPARTITE EFFORT.THIS DIVERGENCE IN THE INDUSTRY-LEVEL BARGAININGMAY BE ATTRIBUTED TO SUCH FACTORS AS THENEWNESS OF THE SYSTEM, THE DESIRE OF THEPARTIES TO ACHIEVE AGREEMENT EVEN WITH THEHELP OR GUIDENCE OF THE THIRD PARTY & THESCATTERED LOCATIONS OF PLANTS, ALL OF WHICHMAKE FOR THE COMMITTEE APPROACH.

# BARGAINING WITH MULTIPLE UNIONS----THE

ADVANTAGE OF THIS SYSTEM IS TO INVOLVE MAJORUNIONS SO THAT ACCEPTABILITY OF SETTLEMENTS ISMORE AMONGST THE LARGE NUMBER OF EMPLOYEES.

# TREND TOWARDS JOINT ACTION BY UNIONS-----THIS

IS BARGAINING BETWEEN SINGLE EMPLOYER &MULTIPLE UNION WHEREIN TRADE UNIONS HAVE JOINEDIN COMMON ACTION TO REALISE THEIR DEMANDS.

# COERCIVE BARGAINING-----( COERCE MEANS

PERSUADE, AN UNWILLING PERSON, TO DO SOMETHINGBY USING FORCE OR THREATS) THE TRADE UNIONSOVER A LARGE SEGMENT OF ORGANISED INDUSTRYHAVE SHOWN A TENDENCY FOR AGGRESSIVE ORCOERCIVE METHODS BY RESORTING TO VIOLENCE &OTHER PRESSURE TACTICS SUCH AS GHERAOS, GO-SLOW, OR PEN-DOWN STRIKES TO EXERT PRESSUREON MANAGEMENT. THEIR AGGRESSIVE TENDENCIESHAVE BECOME INCREASINGLY PRONOUNCED IN RECENTYEARS. THIS ATTITUDE OF UNIONS IN CB LED TOUNTOWARD SITUATIONS. OFTEN, THE VIOLENCE & THECOERCIVE TACTIC HAS LED THE MANAGEMENT TOCLOSE DOWN UNIT OR TO DECLARE LOCK-OUT.

# NATURE OF TECHNIQUES----THE MILITANCY &

INEXPERIENCE WITH BARGAINING HAS LEFT ITS IMPRINTON THE NATURE OF TECHNIQUES USED---IN THEPROCESS OF BARGAINING OUTSIDE AGENCIES HAVEPLAYED A MORE USEFUL ROLE THAN THE DIRECTNEGOTTITIONS BETWEEN THE PARTIES. THE USE OFCONCILIATION HAS BECOME INCREASINGLYPRONOUNCED WITH GROWTH IN CB.# THIS INDICATES THE INCREASED TENDENCY AMONGPARTIES TO RESOLVE DIFFERENCES WITH THE HELP OFTHE OUTSIDE PARTY RATHER THAN THROUGH DIRECTDISCUSSIONS.

# THERE IS INCREASING TREND TOWARDS GREATER

APPRECIATION & USE OF CB PRACTICES. IT HASMULTIPLE APPLICATIONS BESIDES SETTLING THE TERMS& CONDITIONS OF EMPLOYMENT. IT ALSO IS AMECHANISM FOR THE INSTITUTIONAL RESOLUTION OFCONFLICT & A MEANS FOR WORKER PARTICIPATION,THROUGH DISCUSSIONS & INVOLVEMENT IN THEMANAGERIAL DECISION-MAKING PROCESS. THIS IS THEGOAL TOWARDS WHICH STABILISED ORGS, WITH AHISTORY OF BIPARTITE AGREEMENTS ARE MOVING,MORE SO IN DEVELOPED COUNTRIES.

# COLLECTIVE BARGAINING REQUIRES A DEGREE OF

MATURITY ON THE PART OF BOTH THE PARTIES. IT ISA PROCESS THAT TAKES BOTH TIME & SKILL, WHICHHAVE TO BE DEVELOPED. BUT ABOVE ALL, IT IS BASEDON THE ASSUMPTION THAT REASONABLE MEN WILLWANT TO REACH AN AGREEMENT, GIVEN TIME & THESIYUATIONAL CONSTRAINTS & OPPORTUNITIES.

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir

# IN 21st CENTURY, THE BUSINESS IS THE

RESPONSIBILITY OF BOTH THE E & E. PERFORMANCE ISTHE KEY DRIVER OF SUCCESS, WHICH WILL LEAD TOSURVIVAL. THE BIGGEST CHALLENGE LIES WITH THE HRPROFESSIONALS TO TAKE UP A DEVELOPMENTALINITIATIVE IN MAKING THE WORK FORCE MOREACCOUNTABLE, COMMITTED AS BUSINESS PARTENERS.THOUGH CB IS A POWERFUL TOOL IN MAINTAININGPEACE & HARMONIOUS RELATIONSHIPS, THE APPROACHNEEDS TO BE REINVENTED AS A COLLECTIVE DECISIONMAKING RATHER THAN CB.

# THE DISTRIBUTION OF BENEFITS SHOULD NOT BE

BASED ON CB, RATHER IT SHOULD BE BASED ONBUSINESS GROWTH MODEL WHICH IMPLIES MAXIMIZINGTHE PROFIT ETHICALLY & DISTRIBUTING THE SAMEPROPORTIONATELY AMONG ALL THE STAKEHOLDERS. ITIS HIGH TIME THAT ORGS & UNIONS UNDERSTOOD &TOOK INITIATIVES IN BREAKING THE MANAGEMENT-WORKER BARRIERS& DEVELOPING A MUTUAL GAIN MODEL TO AVAILCOMPETITIVE ADVANTAGE.( THAT IS WHAT WE LEARNT THROUGH ONE OF THEELEMENTS OF MANAGEMENT NAMELY ‘MENTALREVOLUTION’ GIVEN TO US BY SCIENTIFICMANAGEMENT OF TAYLOR )

“ YOU WILL GET ALL YOU WANT IN LIFE IF YOU

HELP ENOUGH OTHER PEOPLE GET WHAT THEYWANT”------ZIG ZIGLAR

AMEN---SO BE IT.

SUMMARY---THE COLLECTIVE BARGAINING

1. INTRODUCTION. 2. WHAT IS CB ?

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir3. DEFINITION OF CB & WHAT DO WE LEARN FROM THESE DEFINITIONS.4. PREREQUISITES FOR SUCCESSFUL CB.5. CB PROCESS.6. STEPS TO IMPROVE THE PROCESS OF CB.7. TACTICS USED IN CB.8. TYPES OF CBS.9. TRENDS IN CB. AND10. CONCLUSION.

SANMAN KULKARNI 4 Industrial Relations – Rajput SirINTRODUCTION# TECHNOLOGY IS THE APPLICATION OF SCIENTIFIC KNOWLEDGE FORPRACTICAL PURPOSES; IT IS THE BRANCH OF KNOWLEDGE CONCERNEDWITH APPLIED SCIENCES. TECHNOLOGICAL TRANSFER IS THE TRANSFER OFNEW TECHNOLOGY FROM THE ORIGINATOR TO A SECONDARY USER,ESPECIALLY FROM DEVELOPED TO UNDERDEVELOPED COUNTRIES.

# THE INTERRELATIONSHIP BETWEEN TECHNOLOGY, TECHNICAL CHANGES

& IR HAS TIME & AGAIN BEEN THE FOCUS OF ATTENTION OF VARIOUSGPs IN SOCIETY. ANYONE WHO IS INTERESTED IN IR IS CONCERNED WITHTHE EFFECTS OF TECHNOLOGY ON LABOUR MANAGEMENT ISSUES SUCHAS MANPOWER, JOB SECURITY, REDUNDANCY TRG etc. THE UNIONS &THE MANAGEMENT HAVE THEIR RESPECTIVE POINTS OF VIEW, WITH THEGOVT STEPPING IN TO RESOLVE ISSUES & GIVE DIRECTIONS FOR THEFUTURE, KEEPING IN MIND THE NATIONAL INTEREST & OBJECTIVES.

# TECHNOLOGY IS AN AID TO IMPROVE THE ECONOMIC & SOCIAL LIFE

OF PEOPLE, YET AT THE SAME TIME IT CAN BE USED IN A MANNERWHICH IS SOMETIMES DETRIMENTAL TO THIS OBJECTIVE. THIS ISSUE,THAT IS WHAT WOULD BE THE EFFECT OF TECHNOLOGY ON IR, HASBEEN A CENTRE OF DEBATE WHICH WE SHALL NOW CONSIDER.

CONCEPT OF TECHNOLOGICAL CHANGE

# TECHNOLOGY IS AN INSTRUMENT OF DEVELOPMENT. IT IS A VEHICLE

OF CHANGE. TECHNOLOGICAL CHANGES AFFECT VARIOUS ASPECTS OFECONOMIC & SOCIAL LIFE EITHER DIRECTLY OR INDIRECTLY, IMMEDIATELYOR IN THE FINAL ANALYSIS.INDIAN ECONOMY OPERATES ON VARIOUSLEVELS OF TECHNOLOGY SIMULTANEOUSLY, FROM JET PLANES TOBULLOCK CARTS.

# HABER, FERMAN, & HUDSON HAVE IDENTIFIED CERTAIN CHANGES

WHICH AFFECT JOBS & INFLUENCE SKILLS WHICH CAN BE CALLEDTECHNOLOGICAL CHANGES ( MAINLY APPLICABLE TO AMERICAN INDUSTRIALSYSTEM ---WHICH WE CAN TREATE AS TECHNOLOGICAL TRANSFER ). THESECHANGES ARE :- 1. SCIENTIFIC MANAGEMENT OR TIME & MOTION STUDY. 2. CHANGES IN THE LOCATION OF PLANTS. 3. SHIFTS IN PRODUCT DEMAND. 4. CHANGES IN MACHINERY. AND 5. AUTOMATION.

RATIONALISATION & AUTOMATION

# RATIONALISATION & AUTOMATION WHICH ARE DIFFERENT FORMS OF

TECHNOLOGICAL CHANGES HAVE BEEN SYSTEMATICALLY INTRODUCED INTHE INDIAN INDUSTRIAL SYSTEM IN THE SIXTIES.

# AUTOMATION----IT IS ANOTHER FORM OF TECHNOLOGICAL CHANGE,

THOUGH OFTEN, IT IS USED SYNONYMOUSLY WITH TECHNOLOGICALCHANGE. IN AUTOMATION, TECHNOLOGY ITSELF CONTROLS THEOPERATIONS. IN OTHER WORDS THE OPERATIONS ARE SELF-REGULATING.

IMPLEMENTATION OF RATIONALISATION & AUTOMATION IN INDIA

# THE NEED FOR RATIONALISATION & AUTOMATION IN INDIA WAS FELT

IN THE FIFTIES. SALIENT REASONS FOR THESE NEEDS COULD BE :- 1. TO IMPROVE THE STANDARDS OF LIVING OF WORKERS BY HIGHER PRODUCTIVITY. 2. IN THE EUROPEAN & ASIAN COUNTRIES, PARTICULARLY AFTER WORLD WAR I I, WERE USING ADVANCED TECHNOLOGY IN MILLS & FACTORIES WHICH HAD SHOWN BENEFITS WHICH PROMPTED INDIA TO MODERNISE THEIR MACHINERY. 3. TO SUSTAIN IN THE HIGHLY COMPETITIVE WORLD, THE NEED FOR RATIONALISATION WAS FELT TO INCREASE THE PRODUCTIVITY EFFEICIENCY SO THAT EXPORTS COULD BE STEPPET UP. 4. AFTER THE WAR, A VAST SURPLUS IN LABOUR IN NUMBER OF INDUSTRIES WAS THERE WHICH COULD NOT BE RETRENCHED BY THE EMPLOYERS. THIS LED TO RATIONALISATION.

# WHEN THE RATIONALISATION PROCESS WAS INTRODUCED THERE WAS

OPPOSITION ON THE PART OF THE WORKERS BECAUSE OF THE FEAR OFRETRENCHMENT. THE LABOUR MINISTRY & PLANNING COMMISSIONWORKED OUT CERTAIN SAFEGUARDS FOR WORKERS IN THE FORM OFFIXING WORK LOADS, STOPPING FRESH RECRUITMENTS, SHARING OFGAINS THROUGH HIGHER WAGES etc.

# IN THE SECOND FIVE-YEAR PLAN, THE APPROACH TO RATIONALISATION

WAS CLARIFIED. IS WAS TO BE ATTEMPTED ONLY WHEN IT DID NOTLEAD TO UNEMPLOYMENT. IF IT WAS INTRODUCED, IT WAS TO BE INCONSULTATION WITH WORKERS & WAS TO BE EFFECTED ONLY AFTERIMPROVING WORKING CONDITIONS & GUARANTEERING A SHARE OF THEGAINS TO THE WORKERS.

IMPACT OF TECHNOLOGICAL CHANGE

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir# TECH CHANGE DOES HAVE AN IMPACT ON INDUSTRIAL ACTIVITY.IMPORTANT IMPACTS COULD BE :- 1. INSTALLATION OF LARGE NUMBER OF AUTOMATIC MACHINES AT THE SAME TIME NATURALLY CREATES SERIOUS PROBLEMS OF UNEMPLOYMENT BECAUSE BY INTRODUCING AUTOMATION THE NUMBER OF WORKERS FOR THE SAME OUTPUT IS LESS. 2. INTRODUCTION OF ADVANCED TECHNOLOGY SHOULD BE GRADUAL & DONE IN CONSULTATION WITH THE WORKERS’ REPRESENTATIVES & SHOULD SATISFY THE FOLLOWING CONDITIONS :- ( a ) IT ACCOMODATES ALL LABOUR THAT MAY BE RENDERED SURPLUS. ( b ) IT RESULTS IN HIGHER PRODUCTIVITY & EFFICIENCY. ( c ) IT IMPROVES THE LEVEL OF EARNINGS OF THE WORKERS & ENSURES EQUITABLE GAINS DUE TO TECHNOLOGICAL CHANGES. AND ( d ) IT LEADS TO REDUCTION IN COSTS & BENEFITS TO THE COMMUNITY. 3. TECH CHANGE AFFECTS THE WORK ENVIRONMENT & ALTERS THE RELATIONSHIP BETWEEN THE E-E. THIS REQUIRES CHANGES & ADJUSTMENTS IN THE WORK SITUATION. INDUSTRIES BEING OPEN SYSTEMS, ARE REQUIRED TO ABSORB INTERNAL & EXTERNAL PRESSURES. THESE PRESSURES MAKE INDUSTRIES CHANGE THEIR PRODUCTION PROCESSES BY INTRODUCING MODERN TECHNOLOGICAL DEVICES. THIS IS BECAUSE INDUSTRIES WOULD BE LOOSING SKILLED LABOUR & TOUGH MARKET CONDITIONS & REQUIREMENTS OF CUSTOMERS. ONCE THE CHANGE IS INTRODUCED ITS IMPACT DEPENDS ON THREE FACTORS---THE NATURE OF THE CHANGE; THE RATE 7 SPEED AT WHICH THE INNOVATIONS ARE INTRODUCED; AND THE METHODS EMPLOYED BY THE MANAGEMENT FOR INTRODUCING THE CHANGE.

4.TECHNOLOGICAL CHANGE AFFECTS LABOUR IN TWO WAYS—ECONOMIC

& SOCIAL. UNDER ECONOMIC CATEGORY COME REDUNDANCY ( NOT OR NO LONGER NEEDED OR USEFUL ), OCCUPATIONAL ADJUSTMENTS, ALLOCATION OF GAINS, TRANSFER & RETAINING PROBLEMS etc. UNDER SOCIAL CATEGORY WE HAVE PSYCHOLOGICAL FACTORS SUCH AS RESISTANCE TO CHANGE, JOB SATISFACTION, WORKER & UNION REACTIONS & ATTITUDES & PROBLEMS OF CHANGED RELATIONSHIPS. HERE WE MUST REMEMBER THAT ALL CHANGES ARE NOT RESISTED. IT IS FOUND THAT WORKERS RESIST ANY CHANGE IN THEIR WORK AS A RESULT OF AUTOMATION IF IT THREATENS THEIR BASIC SECURITY OR IF THEY DO NOT UNDERSTAND THE CHANGE & WHEN THEY ARE FORCED TO CHANGE. IT IS, THEREFORE, VERY ESSENTIAL TO INTRODUCE ANY CHANGES, PARTICULARLY TECHNOLOGICAL CHANGES, ONLY WHEN THE WORKERS HAVE BEEN TRAINED & MADE TO ACCEPT THE NEEDS FOR CHANGES. THAT IS MAKE THEM A PART OF THE CHANGES.

5. AN IMPORTANT RESULT OF TECHNOLOGICAL CHANGE TO AUTOMATION

IN INDIAN INDUSTRY IS THAT THE OUTPUT PER WORKER HAS RISEN CONSIDERABLY. TRADE UNIONS QUESTION THE ASSUMPTION THAT ALL TECHNOLOGICAL ADVANCE WHICH REPLACES MAN BY MACHINES SPELLS PROGRESS OR GROWTH IN SOCIO-ECONOMIC SENSE. THEY

SANMAN KULKARNI 4 Industrial Relations – Rajput Sir INSIST THAT TECHNOLOGICAL CHANGES LEAD TO ECONOMIC GROWTH ONLY UNDER CERTAIN CONDITIONS. THEY ALSO FEEL WORKERS’ REPRESENTATIVES HAVE A RIGHT TO BE CONSULTED BEFORE THE INTRODUCTION OF ANY CHANGE. ON THE OTHER HAND EMPLOYERS HAVE CONSISTENTLY CLAIMED THAT THEY SHOULD DECIDE UPON SUCH CHANGES & HAVE BEEN WILLING TO DISCUSS THE PROBLEMS OF HOW EMPLOYEES CAN BE PROTECTED FROM THE ADVERSE EFFECTS OF SUCH CHANGES. THIS IS ONE OF THE MAJOR PROBLEMS THAT LEADS TO INDUSTRIAL CONFLICTS. 6. OTHER PROBLEMS WHICH RESULT FROM TECHNOLOGICAL CHANGE ARE :- ( a ) CHANGES IN JOB CONTENT, THEREBY CREATING NEW JOBS TO REPLACE OLD ONES---THIS WOULD REQUIRE WAGE FIXATION FOR THE NEW JOBS. ( b ) FITTING NEW JOBS INTO EXISTING INCENTIVE SCHEME OR PIECE RATE STRUCTURE WHICH CALLS FOR NEW ATTITUDE & SKILLS.

APPROPRIATE TECHNOLOGY : ITS RELEVENCE TO THE INDIAN

CONTEXT

# THE TRANSFER OF LARGE-SCALE COMPLEX TECHNOLOGY FROM HIGHLY

INDUSTRIALISED COUNTRIES TO DEVELOPING COUNTRIES POSES PROBLEMSWHICH COULD BE----IT IS EXPENSIVE; THE EDN & INDUSTRIALINFRASTRUCTURE NEEDED TAKES MANY YEARS TO BUILD UP & ITSINTRODUCTION INHIBITS THE GROWTH OF THE INDEGENOUS INNOVATIVECAPABILITIES OF THE DEVELOPING COUNTRY.

# IN THE PROCESS OF TECHNOLOGICAL DEVELOPMENTS TWO

TERMINOLOGIES CAME IN----“APPROPRIATE TECHNOLOGY” & “INTERMEDIATE TECHNOLOGY” THE COMPARISON OR CLASSIFICATIONAROSE WHEN THE DEVELOPED COUNTRIES OF THE WEST WERECOMPARED WITH THE LESS DEVELOPED COUNTRIES IN TERMS OFTECHNOLOGY, SYSTEMS OF MANUFACTURE etc. WHEN THESECOMPARISONS WERE MADE THERE WAS AN IDENTIFIABLE GAP BETWEENTHE ADVANCED & THE LESS ADVANCED & THEREFORE THE TERM “INTERMEDIATE” CAME INTO USE. THEREFORE THE CONNOTATION OFINTERMEDIATE TECHNOLOGY IS A HALF-WAY STAGE BETWEEN THE SIMPLEOR NON-EXISTENT & THE ADVANCED.

# INTERMEDIATE TECHNOLOGY DENOTES A STAGE BETWEEN THE

BACKWARD & THE ADVANCED. IN INDIA THE BACKWARD IS IDENTIFIEDWITH THE TECHNOLOGY OF TRADITIONAL INDIAN INDUSTRY.

# HOWEVER SINCE NEITHER “APPRORIATE TECHNOLOGY” NOR

“INTERMEDIATE TECHNOLOGY” WAS AN EXACT FIT, A GREAT DEAL OFDISCUSSION ENSUED. THIS SUGGESTED THAT TECHNOLOGY SHOULD BEDEVELOPED OR ADOPTED WHICH WOULD BE APPROPRIATE TO THECONDITIONS FOUND IN THE COUNTRIES WHERE IT WAS BEINGINTRODUCED. THIS DENOTES A SOCIAL & CULTURAL MILIEU, WHEREGIVEN A PARTICULAR COMBINATION OF CONDITIONS, SOCIAL, ECONOMIC,POLITICAL & SO ON, A RELEVENT TECH IS DEVELOPED KEEPING IN VIEW

SANMAN KULKARNI 4 Industrial Relations – Rajput SirALL THE SITUATIONAL FACTORS. SO HERE THE CRITERIA IS THE CONCERNFOR THE APPROPRIATENESS OF TECHNOLOGY.

# THESE CONCERNS FOR ALTERNATE TECHNOLOGIES AROSE DUE TO A

VARIETY OF FACTORS. THE DEVELOPED COUNTRIES UTILISE SYSTEMS THATREQUIRE A SUSTANTIAL CAPITAL OUTLAY PER WORKER. ON THE OTHERHAND, THE LESS DEVELOPED COUNTRIES COULD NOT INVEST MUCH INSOPHISTICATED SYSTEMS BUT HAD ABUNDANT MANPOWER. THEREFORETHE LESS DEVELOPED COUNTRIES HAD TO DEVELOP TECHNOLOGIESWHICH WERE BASED ON A LOWER CAPITAL REQUIREMENTS & WEREMORE LABOUR INTENSIVE FOR EACH UNIT OF OUTPUT. YET THE FACTTHAT TECHNOLOGY AS A FACTOR IS IMPROVING THE STANDARD OFLIVING & PROVIDING GOODS & SERVICES AT REDUCED COSTS, CANNOTALTOGETHER BE IGNORED. HENCE THE DILEMMA OF MATCHING THE TWOREQUIREMENTS. THERE IS NEED TO DEVELOP REQUIRED LABOUR SKILLSTO MATCH MACHINE SKILLS.

# IT WILL BE NOTICED THAT TECH IS A SYSTEM THAT ENABLES PEOPLE

TO IMPROVE THEIR WORK PROCEDURES & AS A RESULT THEIR SOCIAL &ECONOMIC STATUS ALSO. TECH INPUTS CAN BE EFFECTIVELY UTILISED TOPROVIDE MORE EFFICIENT METHODS & BETTER UTILISATION OF SCARCERESOURCES LIKE MANHOUR, MONEY etc. IT CAN MAKE MANY BACK-BREAKING JOBS LESS ARDUOUS. WITH TECH CHANGE, GIVEN THE SAMEAMOUNT OF INPUT, A BETTER OUTPUT MAY BE POSSIBLE. INTRODUCTIONOF NEW TECHNOLOGIES WILL HAVE REPERCUSSIONS ON INDUSTRIALRELATIONS, LIKE LOSS OF JOB SECURITY, CHANGE IN HABITUAL WORKMETHODS, NEED TO ADAPT TO NEW SKILLS etc. THEREFORE THEPERSONNEL & IR MANAGER HAVE TO CAREFULLY EVOLVE A STRATEGYWHICH WOULD BE ACCEPTABLE TO THE WORKERS & AT THE SAME TIMEBE CONCERNED WITH THE VIABILITY OF THE ENTERPRISE.

COCLUSION

# THERE IS NO DOUBT THAT NEW TECHNOLOGIES MUST BE

UNDERSTOOD & SUITABLE ONES SHOULD BE INTRODUCED IN THE INDUSTRY BUT WHO IS GOING TO OPERATE THESE ? SO MAAGEMENT WOULD BE DEEPLY INVOLVED IN TRG THE REQUIRED WORK-FORCE SO THAT NEW TECH COULD BE ADOPTED & AT THE SAME TIME IR ARE NOT DISTURBED. IF THE INITIAL RESISTANCE TO CHANGES IS OVERCOME BY MAKING THE WORKERS A PARTY TO THE CHANGES, LARGE NUMBER OF PROBLEMS COULD BE SOLVED.